Court Relies on NERA Expert’s Valuation of Warranties Offered in a Consumer Class Action Settlement

The Situation

Samsung Electronics Co., Ltd. (“Samsung”) was sued by a class of plaintiffs alleging malfunctions of certain models of Samsung top-loading washing machines. Plaintiffs and defendants reached a settlement in June 2018 that included warranties for future repair/refund related to specific malfunctions: drain pump failure and top-separation. The court scheduled a hearing to determine the fairness of the settlement and attorneys’ fees. 

NERA's Role

NERA Managing Director Lucy P. Allen was retained to estimate the market value of the portion of the settlement related to the warranties. Ms. Allen estimated the market price of the warranties offered in the settlement, one for each type of malfunction, and submitted a declaration on her findings to the court. 

The Result

On 22 May 2020, Judge Timothy D. DeGiusti of the Western District of Oklahoma, issued a judgment approving the settlement agreement. The court relied on Lucy Allen’s declaration for the value of the warranties.